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popeye1250 -> RE: "Subprime bust forces families from homes" (3/29/2007 9:13:31 AM)
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quote:
ORIGINAL: Sinergy
quote:
ORIGINAL: popeye1250
How are people supposed to be able to afford houses if good-paying jobs are out-sourced?
Or if people have to get jobs that pay less than their old ones?
About 10 years ago, when the dot.bomb (outsourcing of high paying computer jobs) happened, and after a bunch of layoffs / downsizing of high paying union jobs in the auto industry, auto manufacturers complained that people in the United States were not buying cars they way they had previously. The auto manufacturers were demanding a government study into why this was the case.
Start:
Companies lay off people.
People lose faith in the economy.
People stop buying expensive things on credit.
Companies lose money and are forced to lay off more people.
Goto Start.
Fascinates me that companies have trouble figuring these things out.
It is like auto manufacturers complaining about having too many SUVs.
Start:
Clinton and Bush Sr. keep oil prices low.
People buy SUVs in record numbers
Auto manufacturers build SUVs in record numbers.
New Orleans gets blown away
Monkeyboy goes to play in the sand
Gas prices quadruple.
People stop buying and/or selling their SUVs.
Auto manufacturers sit there wondering why they have too many unsold SUVs on their lot.
Goto start.
Open head, insert clue.
Sinergy
Sinergy, I agree.
When these big companies outsource good paying jobs or move manufacturing jobs that pay well overseas they are cannibalising their own markets!
Those activities reduce the number of people who can afford to buy their products.
People who make $30 per hour can afford houses, cars, furniture, appliances etc and that's good for the whole economy.
People who make $10 an hour can't really buy much of anything outside of basic subsistance and that's not good for the economy.
This country is headed in the wrong direction.
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